Clearstream facilitates market evolution in the Middle East

Luxembourg / Dubai, 17 July 2012

Clearstream facilitates market evolution in the Middle East

• Abu Dhabi Commercial Bank joins triparty repo service of Clearstream
• National Bank of Abu Dhabi settles loan transactions using Clearstream’s ASL offering

Clearstream continues to facilitate the creation of a Middle Eastern financial market infrastructure: Abu Dhabi Commercial Bank has joined Clearstream’s triparty repo service as a new cash provider. The first trade was executed in Q2/2012 with Commerzbank Dubai and will contribute to the further evolution of a Middle Eastern triparty repo market. Abu Dhabi Commercial Bank accepts Middle Eastern securities to collateralise those trades. In addition, National Bank of Abu Dhabi settled the first loan transaction through Clearstream’s Automated Securities Lending (ASL) offering, a unique service that enhances settlement efficiency through automated loans.

Stefan Lepp, Member of the Executive Board and Head of Global Securities Financing at Clearstream, said: “The Middle East continues to be one of the most dynamic regions in the global economy and Clearstream is committed to support its evolution. At the same time, our triparty repo offering is gaining traction and we welcome Abu Dhabi Commercial Bank as a cash provider.”

Kevin Taylor, Treasurer at Abu Dhabi Commercial Bank, said: “Triparty repo is gaining traction in the Middle East and ADCB is keen to be an active participant and contributor to this trend. Our first Middle Eastern triparty trades are another example of how ADCB manages its liquidity by using all available and best in class techniques. Additional participants from the region will also add momentum to a dynamic triparty repo market among regional and international banks and will promote broad usage of GCC collateral.”

Paul Voce, Global Head of Repo National Bank of Abu Dhabi, said: “We continue to strengthen our relationship with Clearstream and have successfully tested the securities lending offering. Securities lending is an integral part of any liquid repo market and we are leading the way to further facilitate these markets in the Middle East.”

Clearstream has a long-standing presence in the Middle East. Its office in Dubai was opened in 1995 to cover both the Middle East and Africa with a team of local sales and relationship specialists. Clearstream offers a wide range of collateral management services together with a suite of securities lending products as part of its Global Securities Financing (GSF) services. In June 2012, the GSF monthly average reached an outstanding volume of close to 600 billion Euros, illustrating the growing importance of secured financing.